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Quanta Services Inc (NYSE:PWR)
Beneish M-Score
-2.98 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Quanta Services Inc has a M-score of -2.98 suggests that the company is not a manipulator.

PWR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -0.61
Current: -2.98

-3.88
-0.61

During the past 13 years, the highest Beneish M-Score of Quanta Services Inc was -0.61. The lowest was -3.88. And the median was -2.54.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Quanta Services Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9162+0.528 * 1.2007+0.404 * 0.8153+0.892 * 0.9289+0.115 * 0.9806
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9465+4.679 * -0.0617-0.327 * 1.3366
=-2.98

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,385 Mil.
Revenue was 1792.43 + 1713.737 + 1899.272 + 1939.438 = $7,345 Mil.
Gross Profit was 200.217 + 203.313 + 223.039 + 235.215 = $862 Mil.
Total Current Assets was $2,244 Mil.
Total Assets was $5,297 Mil.
Property, Plant and Equipment(Net PPE) was $1,161 Mil.
Depreciation, Depletion and Amortization(DDA) was $200 Mil.
Selling, General & Admin. Expense(SGA) was $613 Mil.
Total Current Liabilities was $1,208 Mil.
Long-Term Debt was $401 Mil.
Net Income was 16.562 + 20.496 + -5.074 + 216.388 = $248 Mil.
Non Operating Income was -1.103 + 0.081 + -0.567 + -1.07 = $-3 Mil.
Cash Flow from Operations was 66.528 + 199.739 + 201.191 + 110.209 = $578 Mil.
Accounts Receivable was $1,627 Mil.
Revenue was 1872.34 + 1861.386 + 2027.614 + 2145.958 = $7,907 Mil.
Gross Profit was 227.505 + 237.906 + 311.628 + 336.903 = $1,114 Mil.
Total Current Assets was $2,316 Mil.
Total Assets was $6,131 Mil.
Property, Plant and Equipment(Net PPE) was $1,130 Mil.
Depreciation, Depletion and Amortization(DDA) was $190 Mil.
Selling, General & Admin. Expense(SGA) was $697 Mil.
Total Current Liabilities was $1,179 Mil.
Long-Term Debt was $214 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1384.554 / 7344.877) / (1626.833 / 7907.298)
=0.18850608 / 0.20573817
=0.9162

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1113.942 / 7907.298) / (861.784 / 7344.877)
=0.14087518 / 0.1173313
=1.2007

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2244.387 + 1160.87) / 5297.101) / (1 - (2315.567 + 1129.597) / 6130.51)
=0.35714705 / 0.43802979
=0.8153

4. SGI = Sales Growth Index

Ratio of sales in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7344.877 / 7907.298
=0.9289

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(190.026 / (190.026 + 1129.597)) / (199.806 / (199.806 + 1160.87))
=0.14400022 / 0.14684319
=0.9806

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(612.608 / 7344.877) / (696.764 / 7907.298)
=0.08340616 / 0.08811657
=0.9465

7. LVGI = Leverage Index

The ratio of total debt to total assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((401.119 + 1208.089) / 5297.101) / ((214.255 + 1179.148) / 6130.51)
=0.30379032 / 0.2272899
=1.3366

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(248.372 - -2.659 - 577.667) / 5297.101
=-0.0617

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Quanta Services Inc has a M-score of -2.98 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Quanta Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.10051.0510.77640.9861.0181.08390.98011.00061.03580.9209
GMI 0.93270.91830.96120.9391.10121.21270.84561.0291.02031.2368
AQI 0.80662.01840.94380.94431.04110.99950.86741.06611.08280.8276
SGI 1.14511.2591.42330.87781.09381.15551.41171.0831.20830.9774
DEPI 1.01181.33160.83411.18470.9611.03630.98211.22460.77910.9042
SGAI 0.85011.05260.90391.15040.90090.94970.91191.02991.20360.8598
LVGI 1.00220.58280.60650.93690.76261.4421.03121.05091.04651.7086
TATA -0.0642-0.0244-0.024-0.0523-0.0186-0.01810.0386-0.01390.0081-0.0585
M-score -2.65-1.78-2.34-2.89-2.31-2.37-2.08-2.42-2.25-3.01

Quanta Services Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.09691.11681.11741.03220.91530.89960.87850.92410.96390.9162
GMI 1.03441.08271.09661.011.06011.06561.13051.24941.22051.2007
AQI 1.09241.08340.92241.08280.92071.09940.94830.82760.96590.8153
SGI 1.06661.10961.16851.21251.1951.13741.03320.9740.9430.9289
DEPI 1.19041.16421.1460.76250.97820.74060.70810.92390.74690.9806
SGAI 1.13381.08881.14041.2071.04781.09220.98850.85740.9420.9465
LVGI 1.05221.06551.10751.04651.19131.38271.61621.70861.53451.3366
TATA 0.0010.01730.01950.0081-0.0325-0.0503-0.043-0.0563-0.0637-0.0617
M-score -2.29-2.13-2.15-2.26-2.61-2.78-2.95-2.99-2.95-2.98
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